Form 1065 K-1 Box i2 and Box 11

Box i2 is checked as this investment is an IRA.  However it is an ETF for energy and shows a loss in box 11 code C.  

My CPA says I can use this K-1 for the loss but checking box i2 removes the K-1 form.  Confused.

So do I report this K-1 or not?